REPORT TO THE NATIONS

Page 29

The following chart sorts the industries of the victim organizations by median loss. Although the banking and financial services, government and public administration, and manufacturing sectors had the highest number of fraud cases, they were not as severely impacted by the reported frauds as other industries. For example, only nine cases reported to us involved the mining industry, but those cases resulted in the largest median loss. Similar findings were noted in the real estate, construction, and oil and gas industries.

Industry of Victim Organizations (Sorted by Median Loss) Industry

Number of Cases

Mining

Percent of Cases

Median Loss

9

0.7%

$500,000

Real Estate

28

2.0%

$375,000

Construction

47

3.4%

$300,000

Oil and Gas

44

3.2%

$250,000

Banking and Financial Services

229

16.7%

$232,000

Manufacturing

139

10.1%

$200,000

Health Care

92

6.7%

$200,000

Transportation and Warehousing

36

2.6%

$180,000

Services (Other)

48

3.5%

$150,000

9

0.7%

$150,000

Communications and Publishing Other

7

0.5%

$150,000

Telecommunications

43

3.1%

$135,000

Services (Professional)

55

4.0%

$115,000

Agriculture, Forestry, Fishing and Hunting

20

1.5%

$104,000

141

10.3%

$100,000

Retail

83

6.1%

$100,000

Technology

38

2.8%

$100,000

Insurance

78

5.7%

$95,000

Religious, Charitable or Social Services

54

3.9%

$85,000

Arts, Entertainment and Recreation

32

2.3%

$71,000

Wholesale Trade

27

2.0%

$50,000

Utilities

24

1.8%

$38,000

Education

88

6.4%

$36,000

Government and Public Administration

For a more detailed examination of how fraud affects organizations in different industries, we also broke down illustrate this analysis for those industries for which more than 40 cases were reported to us.

Banking and Financial Services

Government and Public Administration

229 Cases

141 Cases

Number of Cases

Percent of Cases

Number of Cases

Percent of Cases

Corruption

83

36.2%

Cash on Hand

48

21.0%

Corruption

50

35.5%

Billing

33

23.4%

Cash Larceny

29

Billing

29

12.7%

Non-Cash

27

19.1%

12.7%

Skimming

25

Non-Cash

17.7%

24

10.5%

Expense Reimbursements

19

13.5%

Financial Statement Fraud

22

9.6%

Payroll

18

12.8%

Skimming

21

9.2%

Check Tampering

15

10.6%

Check Tampering

21

9.2%

Cash on Hand

12

8.5%

Expense Reimbursements

Scheme

Scheme

13

5.7%

Cash Larceny

10

7.1%

Register Disbursements

9

3.9%

Financial Statement Fraud

9

6.4%

Payroll

3

1.3%

Register Disbursements

4

2.8%

2012 Report to the Nations on Occupational Fraud and Abuse |

the cases within each industry by type of scheme and respective frequency of occurrence. The following charts

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